Digjam promoters settle case with Sebi; pay Rs 13.27 lakh

Four promoters of textile firm Digjam have settled the matter related to delay in compliance of disclosure rules with market regulator Sebi after a payment of Rs 13.27 lakh as settlement charges.

As per Sebi, Digjam promoters -- Janardhan Trading Co, Central India General Agents, Birla Holdings and Sukriti Education Society -- had failed to make timely disclosures to the stock exchanges regarding an increase in their voting rights in the company.

They approached the Securities and Exchange Board of India to settle the case under the regulator's consent order mechanism. The entities had proposed to pay Rs 13,27,500 as settlement charges.

Accepting the proposed settlement terms, Sebi in an order issued on December 31 said that "the delayed compliance" with the norms "is settled according to the consent terms and Sebi shall not initiate any enforcement action against the applicants for the said default".

The four promoters had admitted that there was a delay of 101 days in filing requisite disclosures, the order said.

According to them, on account of non-payment of dividend by Digjam, voting rights accrued upon applicants with respect to 14.94 lakh preference shares increased their voting rights from 33.92 per cent to 42.72 per cent of the paid up capital of the company, it added.

The settlement has been approved by Sebi's High Powered Advisory Committee (HPAC) and panel of whole time members.

In case any representations made by the entities are found to be untrue, then enforcement action could be initiated.